A major step forward has been taken in the development of the Lobito Corridor railway, a strategic logistics project set to transform bulk cargo movement across Central and Southern Africa.
The Africa Finance Corporation and the African Development Bank have each committed $500 million toward the project, while Italy will contribute an additional $320 million. Together, this $1.32 billion funding package strengthens momentum behind one of the continent’s most important transport corridors.
Designed to link Zambia’s Copperbelt to the Atlantic port of Lobito in Angola, the railway will provide a more efficient export route for copper, cobalt, and other bulk commodities. The corridor is expected to significantly reduce transit times and ease pressure on existing road and rail networks.
A Game-Changer for Bulk Logistics
The project includes the upgrade of existing rail infrastructure from Lobito into the Democratic Republic of the Congo, as well as the construction of a new railway line extending into Zambia’s North-Western Province and Copperbelt.
Spanning approximately 830 km, the railway is expected to cost up to $5 billion, with construction targeted to begin soon and completion planned by 2030.
For cargo and bulk handling operators, the impact will be substantial:
- Transit times could drop from around 16 days to just 7 days
- Transport costs are expected to decrease significantly
- Export capacity for high-volume minerals will increase
To ensure commercial viability, the corridor will require freight commitments of between 2.5 and 3 million tonnes annually. Early indications are positive, with initial commitments already secured and potential volumes projected to exceed 5 million tonnes.
Strengthening Regional Supply Chains
Beyond logistics efficiency, the Lobito Corridor is emerging as a key route in global supply chains for critical minerals. Copper and cobalt transported along this route are essential for industries such as renewable energy, electric vehicles, and advanced manufacturing.
The project also represents a strategic diversification of export routes, reducing reliance on traditional corridors and improving resilience across the regional logistics network.
Investment and Execution Progress
Project development is being led by the Africa Finance Corporation, with procurement already underway. Several international engineering firms have assessed the project, with contractor selection expected soon and construction anticipated to begin within the next phase.
Financial close is targeted for 2027, marking a critical milestone in bringing the corridor into operation.
Driving Trade and Industrial Growth
Once operational, the Lobito Corridor is expected to unlock significant economic value for both Angola and Zambia by:
- Enhancing bulk cargo handling efficiency
- Increasing export competitiveness
- Supporting mining sector expansion
- Stimulating cross-border trade
For the cargo and bulk handling industry, this project represents a major shift toward faster, more reliable, and cost-effective logistics solutions in one of Africa’s most resource-rich regions.
